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Consider a lessor who is leasing an asset that costs $500,000 today. The term of the lease is three years and payments are to be
Consider a lessor who is leasing an asset that costs $500,000 today. The term of the lease is three years and payments are to be made on a monthly basis. Assume that the lessor needs to charge 5 percent interest to cover the cost of funds and to make a profit and that the fair market value of the asset is 60 percent of the original cost at the conclusion of the lease term
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